The Panic of 1837 followed the collapse of U.S. land speculation and helped produce a depression lasting about five years.
During the 1830s, easy credit, rising land prices, and strong cotton exports encouraged rapid expansion. President Andrew Jackson’s banking policies, including the removal of federal deposits from the Second Bank of the United States, contributed to financial instability. His Specie Circular also required payment for public land in gold or silver, reducing the availability of credit.
The crisis began in May 1837 when banks in New York suspended specie payments. Bank failures, falling prices, business closures, and unemployment spread across the United States. Recovery was slow and uneven, with severe effects on merchants, workers, farmers, and land speculators.
The event is often linked to Martin Van Buren’s presidency because it began soon after he took office, although its causes developed during the preceding expansion.